Ten Ways to Simplify Administration of Your International Assignment Program

[Editor’s Note: We are happy to welcome Jen Stein as a Guest Author. Jen is the Managing Director of the Global Tax Network Chicago office. She has more than 15 years of experience in expat and foreign national tax preparation and consulting, starting her career with Arthur Andersen, and then Ernst & Young, where she served for over 14 years.]

International assignment administration is complex. Sometimes it’s useful to take a step back and review basic components. The list below, while not exhaustive, is a good starting point to help review your international assignment process and procedures. Adopting one or all of these components may make your life easier when administering international assignments.

Have a written tax equalization policy for international assignments. Why? Because by having one it will:

Enhance assignee mobility and satisfaction;

Protect assignee cash flow;

Minimize special negotiations;

Help make international assignments tax neutral;

Control assignment costs; and

Limit the risk of tax non-compliance.

Have a written compensation policy for international assignments. Why? Because by having one it will:

Establish a process to select assignees. Why? A good selection process is the best way to ensure successful assignees. Best practices include:

Identify not only the skill-set, but also the traits and personal characteristics required for the position and environment;

Determine the family’s enthusiasm for the assignment;

Discuss the impact of the assignment on the employee’s career goals; and

Have all the corporate parties in the transfer identify and agree upon expectations, goals and perceived benefits of the position.

Develop repatriation procedures. Why? Because all assignments must end eventually. Do you follow the following steps to ensure smooth repatriations?

During the assignment, is there a mentoring program to help the assignee keep abreast of company and local news?

Is a meaningful position (if not promotion) provided to the returning employee?

Does the corporation acknowledge and utilize the repatriating employee’s international skills?

Is reverse culture shock acknowledged and help provided?

Does your company have a global business perspective that understands the great investment made in international assignees?

Actively manage communications with assignees. Why? You can never over-communicate with assignees. Be sure your communications are:

Frequent and timely;

Clearly understandable;

Informative;

Concise and to the point; and

Professional in tone.

The above list illustrates various groups that often interact as part of a successful international assignment program. As we all know, a breakdown in one area can reverberate throughout the program, impacting both Company administrators and the assignees. Utilization of even one of the above components can have a positive impact on your international assignment program.

What tips can you offer that are effective in your organization? Please leave a comment with your thoughts.

Global Tax Network provides international assignment tax compliance and consulting services for corporate global mobility programs, including program development, ongoing tax management, and special projects. The firm is recognized as a leader in consulting for emerging to mid-sized global mobility programs. GTN has six U.S. offices, with allied partners and resources in more than 100 countries to support assignee home and host tax requirements. For more information please contact us.

A good list which obviously has a weighting towards your own specialisation. I would suggest that it pre-supposes that the company has sorted out why they are expatriating staff, who will be likely to move and what happens after the assignment is over. Particularly important in these days of austerity is the agree the criteria for recognising the success of an assignment.